Foreigners cut buying U.S. ‘Grease’

By Jason on February 17, 2010

“Our retaliation should not be restricted to merely military matters, and we should adopt a strategic package of counter-punches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease,” said Luo Yuan, a researcher at the Academy of Military Sciences in China.

All Empires rise and fall, and we have been witnessing the beginning of the Fall of another. The United States of American has started to teeter under it’s own debt. The Federal Reserve system has guaranteed the eventual end to its slaves (the American people), at the hands of the banks. Every dollar the Fed issues has to be paid back with interest, and only the Fed issues it. It’s a ponzi scheme that has finally caught up with them.

The inflationary system will reach a critical point where no one will be able to afford anything because everything is made in China, financed by the very banks that are un-doing the US. Now stuff is affordable, except no one has a job at least not a decent middle class job. Indeed, ff we aren’t manufacturing anything we are done. Manufacturing has always been the backbone of a strong middle class and with barely any “made in Canada” items in the stores, there are no Made in Canada jobs, or Made in USA.

With this three-year decline in China and foreigners buying US debt, it will soon happen that the greenback will no longer have enough domestic purchasing power or international conversion clout to be considered the currency of first resort. At that point, the US will finally be exposed as a truly financially broke nation, the shock of which will truly unsettle the world at large. Ask yourself, if still doubt what is said here, why G-8 nations are suddently rushing to try and head off the looming debt crisis and another recession. It is because they know that America’s ability to come to the rescue with another massive enfusion of printed money is now at an end.

WASHINGTON (AP) — A record drop in foreign holdings of U.S. Treasury bills in December sent a reminder that the government might have to pay higher interest rates on its debt to continue to attract investors.

China reduced its stake and lost the position it’s held for more than a year as the largest foreign holder of Treasury debt. Japan retook the top spot as it boosted its Treasury holdings.

The Treasury Department said foreign holdings of U.S. Treasury bills fell by a record $53 billion in December. That topped the previous record drop of $44.5 billion in April 2009. Source: Yahoo News
China PLA officers urge economic punch against U.S.

BEIJING (Reuters) – Senior Chinese military officers have proposed that their country boost defense spending, adjust PLA deployments, and possibly sell some U.S. bonds to punish Washington for its latest round of arms sales to Taiwan.

The calls for broad retaliation over the planned U.S. weapons sales to the disputed island came from officers at China’s National Defence University and Academy of Military Sciences, interviewed by Outlook Weekly, a Chinese-language magazine published by the official Xinhua news agency.

The interviews with Major Generals Zhu Chenghu and Luo Yuan and Senior Colonel Ke Chunqiao appeared in the issue published on Monday.

The People’s Liberation Army (PLA) plays no role in setting policy for China’s foreign exchange holdings. Officials in charge of that area have given no sign of any moves to sell U.S. Treasury bonds over the weapons sales, a move that could alarm markets and damage the value of China’s own holdings. Source: Reuters news

Greece going under was bad and can be compared to a mom and pop operation closing 3 stores. US going under is like Wal Mart, Mcdonalds, KFC, and Coca Cola all closing at the same time. To give you another idea, oil for instance is bought in dollars, so if US fails at one debt repayment the dollar falls dramatically and you can bet the black gold will skyrocket to over 200$ a barrel. Then add in the panic from stock markets around the world all selling. Then from the huge sell off companies are forced to scale back due to falling stock prices inturn jobs loss. Basically the US is the first domino as Greece is close to being the last domino. If the US falls theres no one in front of them. Food for thought!